Overindebtedness was a growing problem in Cambodia even before the pandemic struck. According to the Cambodia Socio-Economic Survey of 2019-2020, the average outstanding loan of $4,435 per household was an increase of around 85 percent compared to 2017 and a significant increase of 339 percent compared to 2014.
Bankruptcy is a seldom used legal provision in Cambodia, even though it has been part of regulations since the passage of the 2007 Law on Insolvency. This issue is most likely seen in the media in the context of garment factories going bankrupt and selling assets to pay creditors and employees.
The spiraling descent exploded into public view this week when supplements seller Srey Knhong took a new tack to solve her financial problem: file for bankruptcy to escape all the debt, then ask her fans to donate money to bring her back to riches.
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